Debt: Chasing yield

May 1, 2013

Falabella became Chile's first corporate borrower to sell a global peso transaction in late April, adding a $200 million-equivalent tranche to a $500 million dollar bond. The triple-B rated borrower paid a reoffer yield of 6.5% on the peso tranche and 3.861% for the dollars. The deal came amid a busy March and April for Latin America's debt markets, and followed a handful of global real transactions. Cosan raised $750 million in a dual currency deal in early March. Investors placed $9 billion in orders for the debt from the energy and infrastructure company. It sold a 500 million real ($252 million) 2018 tranche to yield 9.625%, alongside the initially planned $500m 2023 tranche, which is callable in 2018 and was priced to yield 5.15%. "Conditions are ripe for Brazilian corporates to issue in reais," Cosan chief executive Marcos Lutz told LatinFinance. Banco ABC...

To continue reading please take a free trial, subscribe or login below.


Already have an account?

Subscribe

Subscribe now for unlimited access to all current and archive news, data and market analysis. 

Subscribe

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial

LatinFinance Events

Poll

Are populist governments like Venezuela & Argentina turning pragmatic?

Vote